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Mar 31, 2020
Inogen Q1 2020 Earnings Report
Inogen's financial performance declined slightly in Q1 2020 due to decreased direct-to-consumer sales and lower gross margins, but was partially offset by growth in domestic and international business-to-business sales.
Key Takeaways
Inogen reported a slight decrease in total revenue for Q1 2020, with a net loss of $1.6 million. The company experienced growth in domestic and international business-to-business sales, but a decline in direct-to-consumer sales. Gross margins also decreased due to manufacturing inefficiencies and product sales mix. The company withdrew its 2020 guidance due to the uncertainty surrounding the impact of the COVID-19 pandemic.
Total revenue decreased by 1.9% to $88.5 million compared to Q1 2019.
Domestic business-to-business sales increased by 5.7% to $27.6 million year-over-year.
Direct-to-consumer sales declined by 8.9% to $35.5 million compared to the same period in 2019.
The company withdrew its full year 2020 guidance due to the uncertainty around the impact of the COVID-19 pandemic.
Revenue by Segment
Forward Guidance
Inogen withdrew its previously announced full year 2020 guidance issued on February 25, 2020 as the Company is unable to estimate the scope, duration, and impact of the COVID-19 PHE for full year 2020.
Positive Outlook
- Implementing cost savings by delaying certain personnel hires.
- Reducing advertising spend.
- Increasing rental setups to improve lead utilization.
- The company believes it could continue to see a decline in sales in its direct-to-consumer channel until patient mobility and consumer confidence increases.
- Increase in demand that it experienced for its products in the first quarter in its business-to-business channels due to the COVID-19 PHE may be limited or demand may decline in the future as new COPD patient referrals could decline as physician offices are limiting patient interactions.
Challenges Ahead
- The Company believes it could continue to see a decline in sales in its direct-to-consumer channel until patient mobility and consumer confidence increases.
- The Company also believes the increase in demand that it experienced for its products in the first quarter in its business-to-business channels due to the COVID-19 PHE may be limited or demand may decline in the future as new COPD patient referrals could decline as physician offices are limiting patient interactions.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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